Wednesday December 12, 2007
“For the best income opportunities, look abroad,” says growth and income expert Mark Skousen in his High Income Alert. Here, he looks to Cellcom Israel Ltd. (NYSE: CEL).
“It is clear the real action is occurring in foreign markets. Overseas, growth is stronger, valuations are cheaper, dividends are bigger and currency valuations are stable... or rising.
“Foreign-based telecommunications giants are booming. One that is just getting started is Cellcom Israel Ltd., which only went public in March but is creating a buzz.
“Earlier this month, Cellcom announced that earnings doubled to $203 million on a 7% increase in revenues. Moreover, the company has been paying a dividend right from the beginning, and that dividend is rising from 50 cents in June to 67 cents in November. That’s an annual dividend of 9%. What’s not to like?
”Cellcom offers virtually everything imaginable in Israel (which is booming economically). The company provides cell phone service, outbound and inbound roaming services for tourists, Internet service, conference calling, music downloading, etc.
“It is expanding aggressively and showing bottom-line growth and a double-digit percentage profit margin. Let’s add Cellcom to our High-Income Alert portfolio.”
